Question

Cardiff and Delp is an architectural firm that provides services for residential construction projects. The following data pertain to a recent reporting period.

Activities Costs

Design department

Client consultation ……………………….. 1,500 contact hours \( 270,000

Drawings …………………………………… 2,000 design hours 115,000

Modeling …………………………………… 40,000 square feet 30,000

Project management department

Supervision ………………………………… 600 days \)120,000

Billing ……………………………………….. 8 jobs 10,000

Collections ………………………………… 8 jobs 12,000

Required

1. Using ABC, compute the firm’s activity overhead rates. Form activity cost pools where appropriate.

2. Assign costs to a 9,200-square-foot job that requires 450 contact hours, 340 design hours, and 200 days to complete.

Short answer

Answer

Total Cost of the Job: $150,200

Step-by-step solution

Calculation of activity overhead

$$\begin{gathered} \mathit{C}\mathit{l}\mathit{i}\mathit{n}\mathit{t}\mathbf{}\mathit{C}\mathit{o}\mathit{n}\mathit{s}\mathit{u}\mathit{l}\mathit{t}\mathit{i}\mathit{o}\mathit{n}\mathbf{}\mathit{r}\mathit{a}\mathit{t}\mathit{e}\mathbf{=}\frac{\mathbf{T}\mathbf{o}\mathbf{t}\mathbf{a}\mathbf{l}\mathbf{}\mathbf{C}\mathbf{o}\mathbf{s}\mathbf{t}}{\mathbf{T}\mathbf{o}\mathbf{t}\mathbf{a}\mathbf{l}\mathbf{}\mathbf{C}\mathbf{o}\mathbf{n}\mathbf{t}\mathbf{a}\mathbf{c}\mathbf{t}\mathbf{}\mathbf{H}\mathbf{o}\mathbf{u}\mathbf{r}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\frac{\mathbf{\$}\mathbf{270}\mathbf{,}\mathbf{000}}{\mathbf{1}\mathbf{,}\mathbf{500}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{180} \end{gathered}$$

$$\begin{gathered} \mathit{D}\mathit{r}\mathit{a}\mathit{w}\mathit{i}\mathit{n}\mathit{g}\mathbf{}\mathit{r}\mathit{a}\mathit{t}\mathit{e}\mathbf{=}\frac{\mathbf{T}\mathbf{o}\mathbf{t}\mathbf{a}\mathbf{l}\mathbf{}\mathbf{C}\mathbf{o}\mathbf{s}\mathbf{t}}{\mathbf{T}\mathbf{o}\mathbf{t}\mathbf{a}\mathbf{l}\mathbf{}\mathbf{D}\mathbf{e}\mathbf{s}\mathbf{l}\mathbf{g}\mathbf{n}\mathbf{}\mathbf{H}\mathbf{o}\mathbf{u}\mathbf{r}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\frac{\mathbf{\$}\mathbf{115}\mathbf{,}\mathbf{000}}{\mathbf{2}\mathbf{,}\mathbf{000}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{57}\mathbf{.}\mathbf{5} \end{gathered}$$

$$\begin{gathered} \mathit{M}\mathit{o}\mathit{d}\mathit{e}\mathit{l}\mathit{i}\mathit{n}\mathit{g}\mathbf{}\mathit{r}\mathit{a}\mathit{t}\mathit{e}\mathbf{=}\frac{\mathbf{T}\mathbf{o}\mathbf{t}\mathbf{a}\mathbf{l}\mathbf{}\mathbf{C}\mathbf{o}\mathbf{s}\mathbf{t}}{\mathbf{T}\mathbf{o}\mathbf{t}\mathbf{a}\mathbf{l}\mathbf{}\mathbf{S}\mathbf{q}\mathbf{u}\mathbf{a}\mathbf{r}\mathbf{e}\mathbf{}\mathbf{F}\mathbf{e}\mathbf{e}\mathbf{t}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\frac{\mathbf{\$}\mathbf{30}\mathbf{,}\mathbf{000}}{\mathbf{40}\mathbf{,}\mathbf{000}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{0}\mathbf{.}\mathbf{75} \end{gathered}$$

$$\begin{gathered} \mathit{S}\mathit{u}\mathit{p}\mathit{e}\mathit{r}\mathit{v}\mathit{i}\mathit{s}\mathit{i}\mathit{o}\mathit{n}\mathbf{}\mathit{r}\mathit{a}\mathit{t}\mathit{e}\mathbf{=}\frac{\mathbf{T}\mathbf{o}\mathbf{t}\mathbf{a}\mathbf{l}\mathbf{}\mathbf{C}\mathbf{o}\mathbf{s}\mathbf{t}}{\mathbf{T}\mathbf{o}\mathbf{t}\mathbf{a}\mathbf{l}\mathbf{}\mathbf{N}\mathbf{o}\mathbf{.}\mathbf{}\mathbf{o}\mathbf{f}\mathbf{}\mathbf{d}\mathbf{a}\mathbf{y}\mathbf{s}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\frac{\mathbf{\$}\mathbf{30}\mathbf{,}\mathbf{000}}{\mathbf{40}\mathbf{,}\mathbf{000}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{0}\mathbf{.}\mathbf{75} \end{gathered}$$

$$\begin{gathered} \mathit{B}\mathit{i}\mathit{l}\mathit{l}\mathit{i}\mathit{n}\mathit{g}\mathbf{}\mathit{r}\mathit{a}\mathit{t}\mathit{e}\mathbf{}\mathbf{=}\frac{\mathbf{T}\mathbf{o}\mathbf{t}\mathbf{a}\mathbf{l}\mathbf{}\mathbf{C}\mathbf{o}\mathbf{s}\mathbf{t}}{\mathbf{T}\mathbf{o}\mathbf{t}\mathbf{a}\mathbf{l}\mathbf{}\mathbf{N}\mathbf{o}\mathbf{.}\mathbf{}\mathbf{o}\mathbf{f}\mathbf{}\mathbf{j}\mathbf{o}\mathbf{b}\mathbf{s}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\frac{\mathbf{\$}\mathbf{10}\mathbf{,}\mathbf{000}}{\mathbf{8}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{1}\mathbf{,}\mathbf{250} \end{gathered}$$

$$\begin{gathered} \mathit{C}\mathit{o}\mathit{l}\mathit{l}\mathit{e}\mathit{c}\mathit{t}\mathit{i}\mathit{o}\mathit{n}\mathbf{}\mathit{r}\mathit{a}\mathit{t}\mathit{e}\mathbf{=}\frac{\mathbf{T}\mathbf{o}\mathbf{t}\mathbf{a}\mathbf{l}\mathbf{}\mathbf{C}\mathbf{o}\mathbf{s}\mathbf{t}}{\mathbf{T}\mathbf{o}\mathbf{t}\mathbf{a}\mathbf{l}\mathbf{}\mathbf{N}\mathbf{o}\mathbf{.}\mathbf{}\mathbf{o}\mathbf{f}\mathbf{}\mathbf{j}\mathbf{o}\mathbf{b}\mathbf{s}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\frac{\mathbf{\$}\mathbf{12}\mathbf{,}\mathbf{000}}{\mathbf{8}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{1}\mathbf{,}\mathbf{500} \end{gathered}$$

Assigning of cost

$$\begin{gathered} \mathit{D}\mathit{e}\mathit{s}\mathit{i}\mathit{g}\mathit{n}\mathbf{}\mathit{D}\mathit{e}\mathit{p}\mathit{a}\mathit{r}\mathit{t}\mathit{m}\mathit{e}\mathit{n}\mathit{t}\mathbf{}\mathit{C}\mathit{o}\mathit{s}\mathit{t}\mathbf{}\mathit{f}\mathit{o}\mathit{r}\mathbf{}\mathit{t}\mathit{h}\mathit{e}\mathbf{}\mathit{J}\mathit{o}\mathit{b}\mathbf{=}\mathit{C}\mathit{l}\mathit{i}\mathit{n}\mathit{t}\mathbf{}\mathit{C}\mathit{o}\mathit{n}\mathit{s}\mathit{u}\mathit{l}\mathit{a}\mathit{t}\mathit{i}\mathit{o}\mathit{n}\mathbf{}\mathit{C}\mathit{o}\mathit{s}\mathit{t}\mathbf{+}\mathit{D}\mathit{r}\mathit{a}\mathit{w}\mathit{i}\mathit{n}\mathit{g}\mathbf{}\mathit{C}\mathit{o}\mathit{s}\mathit{t}\mathbf{+}\mathit{M}\mathit{o}\mathit{d}\mathit{e}\mathit{l}\mathit{i}\mathit{n}\mathit{g}\mathbf{}\mathit{C}\mathit{o}\mathit{s}\mathit{t} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{180}\mathbf{\times }\mathbf{450}\mathbf{+}\mathbf{\$}\mathbf{57}\mathbf{.}\mathbf{5}\mathbf{\times }\mathbf{340}\mathbf{+}\mathbf{\$}\mathbf{0}\mathbf{.}\mathbf{75}\mathbf{\times }\mathbf{9}\mathbf{,}\mathbf{200} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{81}\mathbf{,}\mathbf{000}\mathbf{+}\mathbf{\$}\mathbf{19}\mathbf{,}\mathbf{550}\mathbf{+}\mathbf{\$}\mathbf{6}\mathbf{,}\mathbf{900} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{107}\mathbf{,}\mathbf{450} \end{gathered}$$

$$\begin{gathered} \mathit{P}\mathit{r}\mathit{o}\mathit{j}\mathit{e}\mathit{c}\mathit{t}\mathbf{}\mathit{M}\mathit{a}\mathit{n}\mathit{a}\mathit{g}\mathit{e}\mathit{m}\mathit{e}\mathit{n}\mathit{t}\mathbf{}\mathit{C}\mathit{o}\mathit{s}\mathit{t}\mathbf{}\mathit{f}\mathit{o}\mathit{r}\mathbf{}\mathit{t}\mathit{h}\mathit{e}\mathbf{}\mathit{j}\mathit{o}\mathit{b}\mathbf{=}\mathit{S}\mathit{u}\mathit{p}\mathit{e}\mathit{r}\mathit{v}\mathit{i}\mathit{s}\mathit{i}\mathit{o}\mathit{n}\mathbf{}\mathit{C}\mathit{o}\mathit{s}\mathit{t}\mathbf{+}\mathit{B}\mathit{i}\mathit{l}\mathit{l}\mathit{i}\mathit{n}\mathit{g}\mathbf{}\mathit{C}\mathit{o}\mathit{s}\mathit{t}\mathbf{+}\mathit{C}\mathit{o}\mathit{l}\mathit{l}\mathit{e}\mathit{c}\mathit{t}\mathit{i}\mathit{o}\mathit{n}\mathbf{}\mathit{C}\mathit{o}\mathit{s}\mathit{t} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{200}\mathbf{\times }\mathbf{200}\mathbf{+}\mathbf{\$}\mathbf{1}\mathbf{,}\mathbf{250}\mathbf{\times }\mathbf{1}\mathbf{+}\mathbf{\$}\mathbf{1}\mathbf{,}\mathbf{500}\mathbf{\times }\mathbf{1} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{81}\mathbf{,}\mathbf{000}\mathbf{+}\mathbf{\$}\mathbf{19}\mathbf{,}\mathbf{550}\mathbf{+}\mathbf{\$}\mathbf{6}\mathbf{,}\mathbf{900} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{42}\mathbf{,}\mathbf{750} \end{gathered}$$

role="math" localid="1654760335586" $$\begin{gathered} \mathit{T}\mathit{o}\mathit{t}\mathit{a}\mathit{l}\mathbf{}\mathit{C}\mathit{o}\mathit{s}\mathit{t}\mathbf{}\mathit{f}\mathit{o}\mathit{r}\mathbf{}\mathit{t}\mathit{h}\mathit{e}\mathbf{}\mathit{J}\mathit{o}\mathit{b}\mathbf{=}\mathit{D}\mathit{e}\mathit{s}\mathit{i}\mathit{g}\mathit{n}\mathbf{}\mathit{D}\mathit{e}\mathit{p}\mathit{a}\mathit{r}\mathit{t}\mathit{m}\mathit{e}\mathit{n}\mathit{t}\mathbf{}\mathit{C}\mathit{o}\mathit{s}\mathit{t}\mathbf{+}\mathit{P}\mathit{r}\mathit{o}\mathit{j}\mathit{e}\mathit{c}\mathit{t}\mathbf{}\mathit{M}\mathit{a}\mathit{n}\mathit{a}\mathit{g}\mathit{e}\mathit{m}\mathit{e}\mathit{n}\mathit{t}\mathbf{}\mathit{C}\mathit{o}\mathit{s}\mathit{t} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{107}\mathbf{,}\mathbf{450}\mathbf{+}\mathbf{\$}\mathbf{42}\mathbf{,}\mathbf{750} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{150}\mathbf{,}\mathbf{200} \end{gathered}$$